2013 -- S 0695

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LC01650

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO BUSINESSES AND PROFESSIONS - EARLY OFFERS FOR MEDICAL

INJURY CLAIMS

     Introduced By: Senators Bates, and Hodgson

     Date Introduced: March 06, 2013

     Referred To: Senate Health & Human Services

It is enacted by the General Assembly as follows:

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     SECTION 1. Title 5 of the General Laws entitled "BUSINESSES AND PROFESSIONS"

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is hereby amended by adding thereto the following chapter:

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     CHAPTER 37.8

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EARLY OFFERS FOR MEDICAL INJURY CLAIMS

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     5-37.8-1. Defintions. – As used in this chapter:

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     (1) “Claim for medical injury” means any claim against a medical care provider, whether

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based in tort, contract, or otherwise, to recover damages on account of a medical injury.

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     (2) “Claimant” means an individual who, in his or her own right, or on behalf of another

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as otherwise permitted by law, is seeking compensation for a medical injury, due to alleged sub-

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standard medical care or treatment.

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     (3) “Early offer” means an offer to pay an injured person’s economic loss related to a

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medical injury, and reasonable attorney’s fees and costs incurred in representing the injured

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person under this chapter. No other damages of any kind shall be included in an early offer under

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this chapter.

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     (4) “Economic loss” means monetary expenses incurred by or on behalf of a claimant

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reasonably related to a medical injury and its consequences, including actual out-of-pocket

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medical expenses, replacement services, additional payment to the claimant pursuant to section 5-

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37.8-7, and one hundred percent (100%) of the claimant’s salary, wages, or income from self-

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employment or contract work lost as a result of the medical injury. Economic loss does not

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include: pain and suffering, punitive damages, enhanced compensatory damages, exemplary

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damages, damages for loss of enjoyment of life (hedonic damages), inconvenience, physical

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impairment, mental anguish, emotional pain and suffering, and loss of the following: earning

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capacity, consortium, society, companionship, comfort, protection, marital care, parental care,

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attention, advice, counsel, training, guidance or education, and all other non-economic damages

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of any kind.

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     (5) “Hearing officer” means a person of judicial and/or legal training, common sense, and

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a respect for the law, chosen by agreement of the parties from a list of neutral persons maintained

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by the judicial branch office of mediation and arbitration. If the parties cannot agree on the choice

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of a hearing officer, one will be selected at random from the list by the insurance department.

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Fees paid to the hearing officer for presiding at hearings under this chapter shall be paid by the

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medical care provider at a rate of two hundred dollars ($200) per hour and shall be reviewed for

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reasonableness by the insurance department. No hearing officer shall be employed by the

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insurance department or shall serve if such service would constitute a conflict under the Rhode

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Island Rules of Professional Conduct, or would require disqualification under the Code of

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Judicial Conduct.

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     (6) “Medical care provider” means a physician, physician’s assistant, registered or

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licensed practical nurse, hospital, clinic, or other health care provider or agency licensed by the

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state, or otherwise lawfully providing medical care or services, or an officer, employee, or agent

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thereof acting in the course of and scope of employment.

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     (7) “Medical injury” or “injury” means any adverse, untoward, or undesired

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consequences caused by professional services rendered by a medical care provider, whether

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resulting from negligence, error, or omission in the performance of such services; from rendition

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of such services without informed consent or in breach of warranty or in violation of contract;

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from failure to diagnose; from premature abandonment of a patient or of a course of treatment;

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from failure properly to maintain equipment or appliances necessary to the rendition of such

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services; or otherwise arising out of or sustained in the course of such services.

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     (8) “Notice of injury” means written notice by certified mail provided to the medical care

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provider alleged to have caused a medical injury, and containing:

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     (i) The name, address, and telephone number of the claimant;

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     (ii) The believed date and place of the alleged medical injury;

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     (iii) The nature of the alleged injury;

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     (iv) An explanation, if known, as to how the alleged injury was caused;

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     (v) A description of the severity of the alleged injury, including the claimant’s opinion of

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where the injury is located on the National Practitioner Data Bank severity scale;

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     (vi) Medical records and medical bills associated with the alleged injury or a limited

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authorization allowing the medical care provider to obtain medical records and medical bills

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associated with the alleged injury;

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     (vii) Evidence of lost wages or income from self-employment or contract work for the

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individual suffering from an alleged medical injury, which may be supplied through income tax

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returns or paycheck stubs for the year prior to the alleged injury and any subsequent records up to

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the date of the notice of alleged injury, or a limited authorization allowing the medical care

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provider to obtain such records;

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     (viii) A demand for economic loss resulting from the alleged injury, that includes only

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medical expenses, replacement services, reasonable attorney’s fees, and lost wages, or income

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from self-employment or contract work;

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     (ix) The name, address, and telephone number of claimant’s attorney; and

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     (x) A request that the medical care provider extend an early offer of settlement of the

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claim.

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     (9) “Personal representative” means an executor, administrator, successor personal

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representative, or special administrator of a decedent’s estate or a person legally authorized to

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perform substantially the same functions.

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     (10) “Reasonable attorney’s fee” means twenty percent (20%) of the present value of the

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claimant’s economic loss and the reasonable costs incurred in representing the injured person

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under this chapter.

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     (11) “Replacement services” means expenses reasonably incurred in obtaining ordinary

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and necessary services from others, who are not members of the injured person’s household, in

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lieu of those the injured person would have performed for the benefit of the household, but could

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not because of the injury.

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     (12) “Wages” means monetary payment for services rendered, and the reasonable value

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of board, rent, housing, lodging, fuel, or a similar advantage received from the employer and

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gratuities received in the course of employment from others than the employer; but “wages” shall

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not include any sum paid by the employer to the employee to cover any special expenses incurred

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by the employee because of the nature of the employment. For individuals receiving employment

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security benefits pursuant to chapters 42-44 of title 28 at the time of the injury, wages shall equal

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the wage rate used to determine the unemployed individual’s benefit pursuant to section 28-44-1

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at all. For a minor who is injured prior to reaching the age of eighteen (18) and who is unable to

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perform any gainful work as a result of the medical injury, upon reaching the age of eighteen (18)

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wages shall equal the mean Rhode Island per capita income as shown by the American

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Community Survey’s 1-year Estimate (inflation adjusted), produced by the United States Census

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Bureau.

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     5-37.8-2. Procedure. -- (a) After a medical injury, the claimant may:

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     (1) Pursue resolution of a claim for medical injury pursuant to this chapter; or

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     (2) Pursue an action for medical injury as provided in title 9 of the Rhode Island general

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laws.

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     (b) For as long as the claimant and medical provider are proceeding under this chapter,

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this section shall govern the procedure for resolving the medical injury claim at issue between the

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two (2) parties, notwithstanding any other provision of law.

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     (c) If the claimant elects to pursue a remedy under this chapter, the claimant shall serve a

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notice of injury to the medical care provider alleged to be responsible for the injury and an

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executed notification and waiver of rights in the form set forth in section 5-37.8-13, by certified

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mail, return receipt requested.

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     (d) Upon the receipt by the medical care provider of a notice of injury and an executed

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notification and waiver of rights, the medical care provider may elect to:

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     (1) Extend an early offer of settlement; or

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     (2) Decline to extend an early offer of settlement.

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     (e) A claimant’s failure to submit a notice of injury requesting an early offer, or a

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provider’s failure to extend an early offer, shall not be subject to review in any hearing, court, or

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other proceeding of any kind.

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     (f) The medical care provider shall respond to the claimant’s notice of injury in writing,

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within ninety (90) days, setting forth the details of its early offer, or indicating that the medical

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care provider has decided not to extend an early offer of settlement. The medical care provider’s

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written response shall be sent by certified mail, return receipt requested, to the address provided

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in the claimant’s notice of injury.

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     (g) The medical care provider may request in writing that the individual alleging a

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medical injury submit to an independent medical examination by a qualified and board certified

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physician chosen by the medical care provider and agreed to by the claimant at a time and place

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reasonably convenient for the claimant. If the parties cannot agree on a physician to conduct the

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examination within thirty (30) days of the request, the hearing officer shall select the physician.

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The physician conducting the examination shall not be affiliated directly or indirectly in any way,

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with the medical care provider alleged to have caused the injury. The cost of the examination,

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including reasonable travel expenses for the claimant, shall be paid by the medical care provider’s

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professional liability insurance company. Within five (5) days of receipt, the medical provider or

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its insurer shall, at no cost to the claimant, provide the claimant with all reports and documents

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originating from the examination. The claimant shall also be entitled to obtain a transcript and/or

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audio-video recording of the examination at the claimant’s expense. Any physician conducting

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medical examinations under this section shall be in good standing with the department of health.

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     (h) If the medical care provider requests that the claimant submit to a physical

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examination as set forth in subsection (g), the time allowed for a medical care provider to respond

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to the claimant’s notice of injury shall be extended by thirty (30) days.

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     (i) If the medical care provider extends an early offer, the claimant shall accept or reject

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the medical care provider’s written offer in writing within sixty (60) days of receipt of the offer.

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If the claimant requests a hearing pursuant to section 5-37.8-10, to resolve any dispute with

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respect to the content of an early offer, the timeframe within which the claimant may accept or

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reject the early offer shall be extended until ten (10) days after the decision on the disputed issue

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is issued by the hearing officer.

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     (j) If the claimant accepts the medical care provider’s early offer, the claimant shall

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notify the medical care provider in writing by certified mail, return receipt requested, and

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thereafter, the claimant is barred from pursuing any claim for the same medical injury against any

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medical care provider.

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     (k) If the claimant rejects the medical care provider’s early offer or does not accept the

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medical care provider’s early offer within the time constraints provided by subsection (i), the

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early offer shall be considered rejected. A claimant who rejects an early offer may pursue an

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action for medical injury against the medical care provider pursuant to title 9 of the Rhode Island

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general laws.

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     (l) A claimant who rejects an early offer and who does not prevail in an action for

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medical injury against the medical care provider by being awarded at least one hundred twenty-

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five percent (125%) of the early offer amount, shall be responsible for paying the medical care

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provider's reasonable attorney's fees and costs incurred in the proceedings under this chapter. The

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claimant shall certify to the court that a bond or other suitable security for payment of the medical

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care provider's reasonable attorney's fees and costs has been posted before the court shall consider

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the claimant’s case.

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     5-37.8-3. Unrepresented Claimant. -- (a) If the claimant is not represented by legal

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counsel, upon receiving a notice of injury, the medical care provider shall provide a neutral

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advisor who is a member of the Rhode Island Bar Association, at the medical care provider’s

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expense, to offer assistance to the claimant and medical care provider under this chapter. Among

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other things, the neutral advisor shall encourage the claimant to consider retaining an attorney,

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and shall ensure the claimant is aware of the differences between proceeding under this chapter or

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as provided in title 9 of the Rhode Island general laws.

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     (b) A claimant who was unrepresented at the time the claimant submitted the notice and

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waiver of rights shall have the right to withdraw the notice of injury and the notice and waiver of

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rights within five (5) business days after the claimant’s first meeting with the neutral advisor,

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which shall occur no later than ten (10) business days from claimant’s notification of the identity

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of the neutral advisor. In the event the claimant withdraws the notice of injury, the early offer

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process shall be terminated and both parties shall proceed as if the notice of injury was never

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filed.

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     (c) No medical care provider or insurer shall extend an early offer prior to the expiration

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of fifteen (15) business days after the claimant receives notification of the appointment of the

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neutral advisor.

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     5-37.8-4. Confidentiality.-- (a) Proceedings, records, and communications during

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negotiation of an early offer shall be treated as private and confidential by the claimant and the

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medical care provider. The outcome and any other writings, evidence, or statements made or

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offered by a party or a party’s representative during negotiation of an early offer and relevant

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only to the early offer process are not admissible in court, shall not be submitted or used for any

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purpose in a subsequent trial, and shall not be publicly disclosed.

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     (b) A notice of injury provided pursuant to subsection 5-37.8-2(c), and subsequent

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actions taken pursuant to this chapter shall be exempt from any requirement to report information

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to the department of health, except in the case the parties reach a settlement under this chapter.

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     5-37.8-5. Payment of Early Offer. -- (a) If an early offer is accepted, economic losses

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previously incurred by the claimant as a result of the medical injury and the reasonable attorney’s

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fees shall be paid by the medical care provider to the claimant within fifteen (15) days of an

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acceptance by the claimant of an early offer.

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     (b) If an early offer is accepted, the medical care provider shall pay future economic

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losses incurred by the claimant to the claimant as such losses accrue. If any requested payment is

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denied, the medical provider shall notify the claimant in writing of the denial and the basis for

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denial, and inform the claimant that any request for a hearing under section 5-37.8-10 regarding

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the denial must be made within thirty (30) days of the date of denial.

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     (1) Payments for medical bills arising after the early offer settlement is reached shall be

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made within fifteen (15) days after the medical care provider receives reasonable proof of the

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facts asserted by the claimant and the amount of loss sustained. If reasonable proof is not supplied

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as to the entire claim, the amount supported by reasonable proof shall be paid within fifteen (15)

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days after such proof is received by the medical care provider. Any part or all of the remainder of

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the claim that is later supported by reasonable proof shall be paid within fifteen (15) days of such

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proof being received by the medical care provider. The medical care provider shall pay any and

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all fees and charges incurred by the claimant resulting from failure to make timely payment of

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medical bills.

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     (2) Payment of lost wages shall be made weekly. At a minimum, such payments shall be

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adjusted annually on July 1 by a factor equal to the percentage change in the Consumer Price

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Index for All Urban Consumers (CPI-U) for the prior twelve (12) months established by the

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Federal Bureau of Labor Statistics.

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     (3) Payment of any other amounts due under an early offer shall be paid within thirty (30)

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days of the date that the provider receives notice and proof of the fact and amount that is due.

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     (4) When necessary for the medical care provider or its insurer to evaluate whether

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medical expenses are reasonably related to the medical injury, the medical care provider may

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request in writing that the claimant submit to an independent medical evaluation as provided by

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subsection 5-37.8-2(g).

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     (c) Interest shall accrue at the rate of one and one half percent (1.5%) per month on any

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amounts due under an early offer that are not paid as prescribed by this section.

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     (d) In lieu of periodic payments, the claimant and medical care provider may agree upon

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a lump sum payment for any and all potential future economic losses suffered by the claimant,

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provided that the lump sum agreement is reviewed and approved by a hearing officer after a

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hearing.

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     5-37.8-6. Compensation for Death. – If death results from a medical injury, the amount

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of an early offer pursuant to this chapter shall include:

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     (1) Any economic loss incurred by the decedent prior to death;

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     (2) The value at the time of death of what would have been the net earnings of the

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deceased, less living expenses during the period of his or her life expectance, but for the medical

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injury;

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     (3) The value of replacement services during the period of the decedent’s life expectance,

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but for the medical injury;

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     (4) The additional payment determined pursuant to section 5-37.8-7; and

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     (5) A reasonable attorney’s fee.

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     5-37.8-7. Additional Payment to the Claimant. -- (a) In addition to the lost wages,

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medical expenses, and replacement services, economic loss included in any early offer under this

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chapter shall include an additional payment to the claimant.

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     (b) The additional payment, as adjusted under subsection (e), that must be included in an

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early offer shall be:

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     (1) For a temporary injury involving only emotional harm, without physical injury: six

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thousand six hundred dollars ($6,600).

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     (2) For a temporary injury involving insignificant harm: two thousand one hundred

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dollars ($2,100).

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     (3) For a temporary injury involving minor harm: seven thousand eight hundred dollars

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($7,800).

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     (4) For a temporary injury involving major harm: (thirty-one thousand five hundred

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dollars ($31,500).

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     (5) For a permanent injury involving minor harm: thirty-five thousand five hundred

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dollars ($35,500).

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     (6) For a permanent injury involving significant harm: eighty-one thousand five hundred

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dollars ($81,500).

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     (7) For a permanent injury involving major harm: one hundred twenty-seven thousand

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five hundred dollars ($127,500).

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     (8) For a permanent injury involving grave harm, or an injury resulting in death: one

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hundred forty thousand dollars ($140,000).

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     (c) Classification of injuries under subsection 37.8-7(b) using the National Practitioner

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Data Bank severity scale.

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     (d) Either party may request a hearing pursuant to section 5-37.8-10 to resolve a dispute

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regarding classification of injury severity under this section.

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     (e) The additional payment amounts in subsection (b) shall be adjusted annually on July 1

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beginning in 2013 by a factor equal to the percentage change in the CPI-U index for medical care

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for the Northeast Region for the prior twelve (12) months established by the Federal Bureau of

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Labor Statistics.

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     5-37.8-8. Assignments; Certain Claims of Creditors. --

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     (a) Payments for economic loss under this chapter shall not be assignable.

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     (b) Claims for child support, spousal support, or combination child and spousal support

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payments, pursuant to section 15-11.1-1, may be enforced against economic loss settlements.

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     5-37.8-9. Multiple Parties Alleged to Have Contributed to Causing Medical Injury. –

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     (a) Every early offer to settle a claim under this chapter shall include all of the economic

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loss, plus a reasonable attorney fee as set forth herein, and shall not be reduced or apportioned

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based on comparative fault of multiple providers. Any medical care provider, or combination of

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providers alleged to have contributed to causing an injury may extend an early offer as provided

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in this chapter, and acceptance of that offer by the claimant shall bar any further lawsuit or other

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claims for compensation by the claimant against all medical care providers arising as a result of

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the same medical injury. However, any medical care provider that extends an early offer to a

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claimant may seek contribution in a separate action against any medical care provider or other

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party that contributed to causing the medical injury. The injured individual shall not be a party to

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any action for contribution between medical care providers; however, the injured individual shall

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reasonably cooperate with the proceedings and provide such reasonable information and

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testimony as may be necessary to resolve the contribution claim. The parties to the action shall

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pay the injured individual all reasonable costs associated with such reasonable cooperation and

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testimony, including travel expenses and reasonable loss of earnings or a witness fee of one

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hundred dollars ($100) per day, whichever is greater.

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     (b) Nothing in this section shall limit claims by the claimant against any party other than

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medical care providers who participated in providing medical care which gave rise to the medical

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injury.

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     5-37.8-10. Dispute Resolution. -- (a) Upon the request of either party, a qualified

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hearing officer shall be chosen as provided in subdivision 5-37.8-1(5) to resolve a dispute

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regarding an early offer made under this chapter.

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     (b) Dispute resolution under this chapter shall be limited to the following issues:

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     (1) Whether an early offer includes all of the economic loss related to the injury that is

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required by this chapter;

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     (2) Whether economic loss of any kind, past or future, asserted by the claimant, is

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reasonably related to an injury that is the subject of an early offer;

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     (3) Which severity level, pursuant to section 5-37.8-7, most closely describes the injury

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that is the subject of an early offer; or

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     (4) What the net present value of an early offer is, for the purposes of calculating the

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appropriate payment for reasonable attorney’s fees.

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     (c) No other disputes arising under this chapter may be the subject of, or resolved

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through, a hearing under this section.

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     (d) Any request for a hearing pursuant to this section shall contain a reasonably complete

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statement of the issue or issues to be resolved in the hearing and shall fully identify all parties to

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the dispute. Any issue not listed in subsection 5-37.8-10(b) shall not be considered. Hearings

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concerning economic loss that arise after a settlement under this chapter shall be requested within

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thirty (30) days of the date payment for such economic loss is denied under subsection 5-37.8-

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5(b).

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     (e) The medical care provider or, if applicable, the medical care provider’s insurer shall

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pay all reasonable costs associated with a hearing under this section.

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     (f) Hearings conducted under this chapter shall be governed exclusively by this section

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and by rules adopted pursuant to section 5-37.8-15.

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     (g) Any hearing conducted under this chapter shall be conducted within forty-five (45)

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days of the request and a decision shall be issued within ten (10) days of completion of the

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hearing. Hearings may be conducted in person or telephonically.

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     (h) On a motion from any party, or on his or her own motion, a hearing officer may

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summarily determine any issue in dispute without a hearing if it appears from the record that

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there are no material issues of fact in dispute. By agreement of the parties, any dispute may be

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determined by the hearing officer on the written record without a hearing.

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     (i) Hearings conducted pursuant to this chapter shall be limited to a reasonable amount of

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time as determined by the hearing officer, shall not require the presence or testimony of expert

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witnesses, and shall be recorded by an accurate audio or stenographic recording of all testimony,

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available to both parties at the non-prevailing parties’ expense.

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     (j) Parties to a hearing under this section shall exchange exhibits and witness lists at least

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ten (10) days prior to the hearing. No exhibit may be introduced or witness called in a hearing

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unless exchanged with the opposing party pursuant to this subsection.

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     (k) The hearing officer shall issue a written decision resolving the issues in dispute. If the

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hearing officer finds against the medical provider on any issue, the decision shall modify the

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terms of the early offer. The early offer, as modified by the decision of the hearing officer, shall

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be binding on the parties.

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     (l) In a hearing conducted pursuant to this section, if the hearing officer determines the

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claimant’s position to be frivolous, the claimant shall reimburse the medical care provider for its

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costs related to presenting the dispute to the hearing officer, up to a maximum of one thousand

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dollars ($1,000).

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     (m) In a hearing conducted pursuant to subsection 5-37.8-10(b) of this section, if the

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hearing officer determines the medical care provider’s position to be frivolous, the medical care

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provider shall reimburse the claimant for its costs related to presenting the dispute to the hearing

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officer, up to a maximum of one thousand dollars ($1,000), or if the claimant is unrepresented,

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pay the claimant double the amount that was frivolously disputed or denied.

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     5-37.8-11. Limitations of Claims. – (a) Claims for medical injury under this chapter

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shall be subject to the limitation set forth in section 9-1-14.1.

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     (b) Providing a notice of injury to a medical care provider as provided in this chapter

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shall operate to toll the applicable statute of limitation with respect to that injury from the time

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such notice is provided to a medical care provider until the expiration of time for a medical care

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provider to extend an early offer, or if an early offer is extended, until the acceptance or rejection

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of an early offer by the claimant, whichever occurs later.

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     5-37.8-12. Subrogation. -- Any insurer or third party who has paid or reimbursed

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economic losses to or for the benefit of the claimant, shall have the right of subrogation against

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the medical provider entering into an early offer of settlement under this chapter.

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     5-37.8-13. Notice and Waiver of Rights. -- (a) Claimants electing to pursue resolution

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of a medical injury under this chapter shall execute a notice and waiver of rights which contains

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the following wording:

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     WAIVER OF RIGHTS

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     By agreeing to submit a notice of injury to the medical care provider, I understand that

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my rights to seek legal remedies and a trial for my injuries guaranteed by title 9 of the Rhode

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Island general laws may be affected.

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     I understand that I have the right to consult and retain an attorney to represent me

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regarding this matter, and that if an early offer settlement is reached, my attorney will be paid

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pursuant to Rhode Island general laws subsection 5-37.8-5(a) by the health care provider, in

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addition to any amount that is paid for my economic loss.

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     If I do not have an attorney when I sign this waiver form, the medical provider will

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appoint a neutral advisor to assist me in the early offer process and to explain, among other

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things, the differences between proceeding under this chapter or as provided in title 9 of the

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Rhode Island general laws.

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     I HAVE THE RIGHT TO WITHDRAW THIS WAIVER AND THE NOTICE OF

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INJURY ANY TIME PRIOR TO MIDNIGHT OF THE FIFTH BUSINESS DAY AFTER MY

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FIRST MEETING WITH THE ADVISOR, WHICH MUST OCCUR NO LATER THAN 10

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BUSINESS DAYS FROM MY NOTIFICATION OF THE IDENTITY OF THE NEUTRAL

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ADVISOR.

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     If after submitting a notice of injury, the medical care provider does NOT extend an early

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offer (Rhode Island general laws subdivision 5-37.8-1(3)), I am free to pursue my legal remedies

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as defined in Rhode Island law without restriction.

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     If after submitting a notice of injury, the medical care provider does extend an early offer

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(Rhode Island general laws subdivision 5-37.8-1(3)), I may either:

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     (1) Accept the early offer;

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     (2) Request a hearing before a hearing officer to determine whether the early offer

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includes all of the economic loss I am entitled to under the statute, and if necessary, the hearing

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officer may order the medical care provider to increase the early offer to meet the requirements of

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the early offer law; or

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     (3) Reject the early offer and seek alternative legal remedies.

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     I understand that if I reject an early offer and am later awarded economic damages equal

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to or less than one hundred twenty-five percent (125%) percent of the amount of the early offer, I

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will be responsible for paying the medical care provider's reasonable attorney's fees and costs

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incurred in proceedings under this chapter.

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     I understand that if an early offer is made by the medical care provider and I accept that

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offer, disputes regarding the early offer can be resolved only in accordance with Rhode Island

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general laws section 5-37.8-10 by a hearing officer listed with the judicial branch office of

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mediation and arbitration, at my request or the request of the medical care provider. If either party

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believes that the decision of the hearing officer is unlawful, that party may seek discretionary

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review in the Rhode Island court system; however, there is no assurance that the courts will

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undertake such review.

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     Date ________________ Signature __________________________

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     (b) A properly executed waiver form by a claimant who is competent at the time the

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waiver is executed shall be conclusively presumed to be a sufficient, knowing, and voluntary

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waiver if the waiver form complies with this section.

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     5-37.8-14. Other Action for Injury. -- Except as set forth in subsection 5-37.8-2(i) a

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claimant may only pursue an action for medical injury as provided in title 9 of the Rhode Island

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general laws when:

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     (1) The claimant elects not to submit a notice of injury pursuant to this chapter;

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     (2) The medical care provider elects not to extend an early offer pursuant to this chapter

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in response to the notice of injury; or

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     (3) The claimant withdraws the notice of injury and the notice and waiver of rights

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pursuant to section 5-37.8-3.

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     5-37.8-15. Rules and Regulation. -- The director of the department of business

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regulation shall adopt rules necessary to administer the hearings process under this chapter.

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     5-37.8-16. Reports. -- (a) The director of the department of business regulation shall

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report to the general assembly annually, on or before November 1, on the effects of the early offer

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process established in this chapter. Such reports shall include, but not be limited to, statistics

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regarding every initiation of an early offer process, including the number of claimants requesting

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early offers, the number of claimants receiving early offers, a record of the amount of each

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demand for economic loss, the corresponding early offer from the medical provider and, if any,

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the ultimate amount received by the claimant, the level of severity of the injuries incurred, and the

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period of time from initial notice to final resolution of claims.

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     SECTION 2. This act shall take effect upon passage.

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LC01650

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO BUSINESSES AND PROFESSIONS - EARLY OFFERS FOR MEDICAL

INJURY CLAIMS

***

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     This act would create an early offer mechanism for the resolution of medical injury

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claims.

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     This act would take effect upon passage.

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LC01650

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